The Brookhaven leader., 1887-09-08
SOLD AT LAST.
The Big Deal by which the Baltimore a
Ohio Road Changes Hands Finally Con-
aummztad.

The Big Deal by which the baltimore u
Ohio Road Changes Hands Finally Con-
summated.
NEW YoRK, Sept. 3-The mysterious
movements Of the stock market during the
past week and the continued rumors from
all sources that some important develop
ments were hanging over the rallroai ana
telegraphic world, were explained by facts
which were made public late yesterday
afternoon.
After breaking of his negotiations with
Ives Il Co, Mr.. Garrett went TO London
where the negotiations were continued WITH
j S. Morgan, and yesterday deal was an
nounced comparable in Importance with
the West Shores consolidation with the
New York Central and the formation OF the
Reading syndicate to reorganize that COM
pany.
The parties to the contract are the Balti-
more & Ohio Railroad Company and syn
dicate composed of J. s. Morgan & Co.,
Barring Bros & Co., Brown, Shlpley & Co.,
Of London; Drexel, Morgan & Co., kldder,
Peabody & Co., and Brown Bros. & 20. OF
this city and Drexel & Co. Of Philadelphia
The most important point in the contract
provides that the management OF the
company shall be placed in competent
hands satisfactory to the syndicate. Iney
are as follows First, the verihcatlon
of etatements, etc, as madei second,
that the management OF the company
shall be placed in competent hands satls-
factory to the syndicate; third, that salts
factory contracts shall be made between
the Baltimore & ONO and the other ROADS
for New York business, which shall remove
all antagonisms between them on the SUB
ject and insure the permanent workings OF
the Baltimore & Ohio in entire harmony
with the other trunk lines to AVOID the con-
struction of expensive parallel lines north
and east of Philadelphia.
In consideration of these contracts beng
signed and with the control in their hands
the syndicate agree to relieve the railroad
from ats present embarrassment oy pro-
viding So, 900, 900 with which to take upthe
floating debt. This will be represented by
5000. OOO in Baltimore & Ohio consolidated
tiVes and S5,OUOOOO preferred stock. The
floating debt as it stands amounts to
81. 900, OOO mostly in the shape Of certih-
Gates of Indebtedness, scrip and notes. VI
this amount a 0OO, 900 is said to have ma
tured September !.
One of the parties to the syndicate au-
thorizes the following statement as the
outcome of the contract: The position OF
the Baltimore & Ohio railroad as an ISM
maelite in the railroad, sleeping car, ex-
press and telegraph business is given up.
All the outside enterprises viii be sold TO
parties to whom they Will be valuable. The
Western Union will control, if it does not
buy, the telegraph lines, and the Pullman
Palace Car Company will take the sleep
ing car business. The express busl-
ness has already gone to the United
States Express Company. The affairs Of
the railroad company Will be entirely reor-
organized and placed upon sound fnan-
cial basis"
The clause of the contracts suspending
all work on the extension from Phladel-
phla TO New York is believed to be the key
note of TIE syndicate's interest in the nego-
tiations and considered to mean that the
Baltimore q Ohio railroad when Invested
of all extraneous enterprises will be oper-
ated practically by the Pennsylvania rail-
road.